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SURPLUS NEWS DOES NOT INCLUDE TRANSPORTATION FUNDS: VBT VOICES CONCERN |
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Richmond, Va. – The revenue news may be overwhelmingly positive for the General Fund, but there is bad news elsewhere. The revenue sources that pay for transportation in Virginia are almost stagnant, barely keeping even with inflation.
Overall, state transportation revenues grew around 3 percent in 2005, compared to the 14.8 percent growth reported in the General Fund. The end-of-year results only barely exceeded the revenue projection of 2.8 percent growth in the fiscal year.
The portion of the sales tax dedicated to transportation was the salvation, growing faster than projected. But the bread and butter revenue sources – the motor fuels tax, sales tax on motor vehicles and licensing fees – all grew 2 percent or less last year.
“Our population is exploding, our economy is on fire and even with the high gasoline prices the highways are crowded,” Steve Haner, steering committee coordinator of Virginians for Better Transportation (VBT) and vice president of the Virginia Chamber of Commerce, said.
“Revenue sources that barely keep up with inflation, when construction and maintenance costs are soaring, will not allow us to address our problems.”
“Yes, some of the General Fund surplus might be spent on transportation, but there are other core programs that depend on the General Fund. State revenues are cyclical and one day there will be a General Fund deficit instead. We need sustainable annual revenues to build a 21st Century transportation system,” Haner said.
“You can debate the wisdom of the General Fund tax increases all you want. That won’t change the fact that the General Assembly has done nothing of consequence on transportation for almost 20 years.”
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